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Tech view: Nifty forms ‘Shooting Star’ candle; nears 50-day EMA

on Tuesday, despite some late selling. The index has formed a ‘Shooting Star’ candle on the daily chart and continued to form higher highs and higher lows.

Analysts believe the index needs a closing above Tuesday’s high of 10,478. This level is close to the 50-day EMA at 10,492.

“The index formed a Shooting Star candle on the daily chart, which indicates that the bears were active at higher levels to push the index lower. It managed to cross the previous week’s high of 10,441, but faced a hurdle near its 50-day EMA. If it fails to hold 10,380, it could face weakness at 10,333 level,” said Chandan Taparia of Motilal Oswal Securities.

On the upside, the 10,525 level is seen as a key support, the expert said.

The 50-pack index rose 5.45 points, or 0.05 per cent, to settle at 10,426. The technical picture of the session does not look grim, as the bulls succeeded in hammering out the bottom within 15 minutes of hitting the intraday low of 10,377, said Mazhar Mohammad of Chartviewindia.in.

“The bulls are pretty much in the game. Unless the 10,377 level is breached in the next session, selling pressure may not be that severe. Similarly, to regain strength, the bulls need to close above Tuesday’s high of 10,478, which is also close to the 50-day EMA (10,492),” the expert said.